The Free Syrian Army says it has taken full control of al-Bab, pushing back Daesh militants to the nearby town of Tadif.
Free Syrian Army (FSA) forces backed by the Turkish military on Thursday retook the northern Syrian town of al-Bab from Daesh.
"We are announcing al-Bab completely liberated, and we are now clearing mines from residential neighbourhoods," said Ahmad Othman, commander of the Sultan Mourad rebel group, part of the FSA.
Al-Bab is a strategic town on a supply route from Daesh's de facto capital in Syria, Raqqa. Its loss is a blow for the terrorist organisation.
Turkey and its allies now plan to press on towards Raqqa.
The Turkish army said on Thursday it had killed at least 58 Daesh militants in and around al-Bab during the latest operations in the area.
Turkey in August 2016 launched Operation Euphrates Shield with Turkish-backed opposition forces to secure Turkey's border with Syria.
The operation aims to drive Daesh and the armed wing of the PYD - considered the Syrian affiliate of the PKK, which Turkey, the US and the EU list as a terrorist organisation - out of the region.
TRT World's Abubakr Al Shamahi in Gaziantep, on Turkey's border with Syria, has more.